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Strategic Planning in the Arts: A Practical Guide
Building Earned Income Selling the Arts
Increasing earned income demands the development of a focused, multi-faceted marketing effort. Arts organizations with a healthy stream of earned income have multiple ticket purchase options for their customers that are marketed via a comprehensive annual plan.
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The potential size and variability of earned income for a performing arts organization is great. (Museums typically have less potential for earned income.) Therefore, creating an effective sales campaign at a reasonable cost is a central challenge for most arts organizations since traditional marketing vehicles are increasingly expensive and the dilution of their message is great in a glut of arts and entertainment advertising. (Smaller companies in larger cities face the most difficult challenge; the costs are the highest and the dilution the greatest.)
Arts organizations can be remarkably effective at turning small marketing budgets into substantial levels of earned income. Indeed, while Board members frequently suggest bringing in expertise from the for-profit sector to assist with marketing efforts, arts professionals could teach a great deal to the giants of industry about marketing efficiency. Nevertheless, in the current competitive environment, all arts organizations must do a better job of targeting audiences and focusing marketing expenditures.
For example, during a recession, the ticket buyers still most likely to buy are those with the inclination to buy early - frequently by subscription. These are the people who have the disposable income, who can afford a ticket. They are frequently also the ones who hold the arts in the highest esteem and are least likely to give up on the arts during a recession. It is important, therefore, to maintain or increase the effort devoted to direct mail and advertising used to create pre-season sales during poor economic times.
But as one makes these moves in marketing strategy, one must also evaluate their political and social implications. If one only works for pre-season sales, one limits the audience to the relatively affluent. Houses might be full, but they might not comprise the entire spectrum of the community. So one must look for techniques to build visibility while selling tickets to a larger audience than pre-season advertising alone can reach.
Building earned income while diversifying one's audience requires the creation of a comprehensive marketing effort that comprises a set of ticket purchase options including:
1. SUBSCRIPTIONS
Those organizations that perform for a substantial length of time in any one city have the opportunity to develop subscription offers of two or more performances. While subscription rates are falling due to reduced levels of discretionary income and the complications of scheduling attendance in advance, many organizations have successfully built subscription efforts by offering discounts, great flexibility in selecting performances, and subscriber-only benefits.
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